Pepper market update 5th August 2024 – Week 31.

 

We would like to send you a quick highlight

•        Last week, the price of pepper continued to decrease from 153,000 VND to 148,000 VND, corresponding to a decline of 3.3%.

•        Demand has started to return in key markets such as the US and the EU. However, demand remains very sluggish in the Middle East and China.

 •        The poor liquidity situation and slow capital flow for pepper have led to a rather sluggish market in the past week.

 Other:

The price of pepper in Vietnam continued to decrease by 3.3% last week due to weak demand in most markets. Additionally, the international market has been receiving quite negative information, such as the risk of war and issues related to maritime transport, including freight rates and extended shipping routes, with no clear timeline for normalization.

 

Furthermore, pressure from pepper supply in various markets has contributed to the price drop last week. It is forecasted that the market will remain quite sluggish in the coming weeks.

 

In addition, many reports in the market indicate that the Fed will begin to lower interest rates in September and the upcoming fourth quarter 2024. This has caused the VND to strengthen against the USD by about 1% last week, making the price of pepper converted to USD more expensive.